As developers struggle to complete all the paperwork required to register property owners associations in Dubai, experts believe that the deadline will be extended. While some developers have been holding back in the hopes of avoiding the costs of compliance, some developers are using consultants to handle the headaches of registration. See the following article from Property Wire for more on this.
The October deadline for the registration of property owners associations in Dubai may be extended as developers struggle to get all the necessary paperwork done in time.
Although some proactive developers in Dubai have started using strata consultants to meet the October deadline, an extension to the cut off date is expected.
‘I feel the October deadline to complete all documentation process and register owners’ associations with the Real Estate Regulatory Agency (Rera) will be extended,’ said Kent O’Brien, chief executive officer of Strata Global.
Graham Yeates, head of Strata Management at international property agents Cluttons, feels the same. ‘There will be pressure to meet the deadline. Even Rera will have a lot of processing to do in a short time. There are not many days left and Ramadan is in the middle of that. But at least many developers are nearing that point,’ he said.
O’Brien said many developers are holding back in the hope they will not have to spend money on compliance. ‘The slowness would be quite alarming if you were an owner in any of the developments. The main culprits appear to be those developers who cannot comply or have FM interest and the new laws will terminate this arrangement,’ he explained.
Yeates added that most developers are using consultants to handle the registration. ‘The main document is the JOP declaration that outlines the details of the project including the method of calculating the cost sharing. Rera will ensure this is calculated in an equitable manner and consultants can assist with this formula. It is a tight deadline and proactive developers are well on the way to reaching this goal,’ he explained.
Strata Global is currently advising developments where the interim owners’ associations are involved, which amounts to 38 owners’ associations and 20 home owners’ associations in Dubai.
Meanwhile, the Sharjah Government has confirmed it will restrict foreign ownership of land and properties to the UAE and GCC nationals, despite reports it would not. It issued a new law confirming that the right to own real estate in the emirate to the UAE nationals and nationals of GCC Gulf Arab states and corporate bodies fully owned by them.
It added that the transfer of property ownership will not be legal unless the bill of ownership is valid and registered in accordance with the provisions of the law. It stressed that all real estate transactions, which were effected legally before this law comes into force, are legally valid.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.